Impact of Regional Blocs on the Energy Efficiency Patterns of African States: A Multi-Directional Efficiency Analysis

Abstract

This study investigates the impact of regional blocs on the energy efficiency patterns of African states using a multi-directional efficiency analysis approach. Adopting a quantitative research design, the study applies a novel Multi-Directional Efficiency Analysis (MEA) methodology alongside traditional Data Envelopment Analysis (DEA) to panel data from 32 African states over the period 2000 to 2019. The primary objectives are to assess environmental energy efficiency patterns, evaluate the energy efficiency status of African economies, explore energy consumption slacks and potential savings, and statistically compare variable-specific efficiencies across African regional blocs. The findings reveal significant variations in energy efficiency across countries and regional blocs, with some states exhibiting consistently higher efficiency scores than others. The MEA approach proves superior to DEA by effectively capturing both radial and non-radial slacks, thereby providing a more robust and nuanced assessment of energy efficiency. Furthermore, the results indicate that external factors such as population size, carbon dioxide emissions, level of technology, renewable energy use, and degree of government intervention significantly influence energy efficiency outcomes. The study also highlights the critical role of regional blocs in shaping energy efficiency dynamics, as disparities exist in their relative contributions to overall efficiency patterns. The findings have important policy implications, emphasizing the need for targeted regional and country-specific energy policies, increased investment in renewable energy and technological advancement, reduced carbon emissions, and enhanced collaboration and knowledge-sharing among African states and regional blocs to improve energy efficiency performance.